Question

If the interest on loans amounted to Rs. 2.45 crores then the total amount of expenditure on advertisement, taxes and research and development is?

• A. 4.2 crores
• B. 4 crores
• C. 3.8 crores
• D. 4.4 crores

Answer 1

The correct option is A

4.2 crores

Let the total expenditure be Rs.x crores.

Then, 17.5 % of x = 2.45 $\Rightarrow$ x = 14.

$\therefore$ Total expenditure = Rs. 14 crores.

and so, the total expenditure on advertisement, taxes and Research and Development

= Rs. [(15 + 10 + 5)% of 14] crores

= Rs. [30% of 14] crores

= Rs. 4.2 crores.